Existing home sales were up by 7% as of September 2021, but experts are now seeing indicators that yearly home value growth will decelerate to 4.5% over the next three years. As property values have risen, there is a lot of questions about when it is the right time to sell as well as how to appraise a property. While real estate agents meticulously poor over these types of industry statistics, homeowners may not realize how personal property appraisals for real estate agents factor into pre-sale groundwork. Here are a few vital factors that appraisers and real estate professionals consider when establishing an opinion of value.
7 Factors That Affect Pre-Sale Personal Property Appraisals for Real Estate Agents
- Location
A Czech proverb advises that good neighbors increase property values. It isn’t just a saying. It is a universal belief that the location one lives in will affect the value of a home. Buyers want to make informed decisions, so they want to know about school availability, quality of education, crime statistics, neighborhood development planning, neighborhood maintenance programs, and local road conditions. Personal property appraisers use several different types of real estate databases, industry tools, and knowledge to fairly establish an opinion of value in which these components affect a home’s value.
- Age & Construction
When and how a home was built is vital to establishing an opinion of value for property appraisers, but the age of the home does not always signify a higher value. Property appraisers also identify what building materials and construction techniques were used. Appraisers also want to identify if any major issues exist that will cause financial hardship. Appraisers look at structural safety and see if any upgrades were made, such as a new roof, electrical system updates, solar power installations, new windows or doors, room add-ons, and new siding as factors that positively affect pre-sale home value.
- Design & Curb Appeal
Another factor that is considered in personal property appraisals for real estate agents is design and curb appeal. Designs that are popular with buyers are mid-century modern ranch, Bohemian, Spanish Colonial, and Tudor yet should also be innovative and trendy. Property stagers recommend skipping trendy finishes and flashy décor because what is in fashion today may be outdated tomorrow and lower a home’s value. Appraisers will also step to the curb and visualize what buyers will see. Is a yard landscaped, roof clean and cared for, and has a nice aesthetic? It will help to increase the appraisal value.
- Property Amenities
Property amenities like updated kitchens, extra storage or garage space, large yards, premium home finishes, room add-ons, multiple bathrooms, hardwood floors, or a finished basement increases value.
- Square Footage & Structural Layout
Square footage will always factor into a home’s value, but the actual distribution of its living space is even more critical as that is what attracts specific buyers. A one-bedroom of equal square footage would likely not have as high a value as a three-bedroom because families are in the market for an immediate increase in living space or are planning to start a family. Features such as extra bathrooms, a finished basement, or extra storage space are also attractive to real estate buyers, which is why it is considered by appraisers during home valuations.
- Neighborhood Features
Neighborhoods that have access to quality healthcare, bike or walkways, playgrounds, excellent city services, fishponds, grocery stores, and safe roadway accessibility are qualities that increase home values. Buyers also want to steer clear of undesirable features like commercial property, busy traffic patterns, residential or commercial developments, garbage facilities, and sewage or power plants.
- Inventory Comparison vs. Real Estate Market Variability
Appraisers compare similar inventory on a street or neighborhood to establish a value, but it can increase or decrease based on real estate market variability. Is a sale occurring during a seller’s market that has a lot of buyers and very few homes available or is it a buyer’s market with lots of real estate yet very few homebuyers? A real estate and personal property appraiser both consider these factors.
Working with veteran pre-sale real estate and personal property appraisers will often make the difference between receiving unethical or honest home appraisals. Manzi’s property appraisal experts have been working with real estate agents for over twenty years. To learn how we can help you plus receive a holiday discount in December, call 617-995-0022 or visit https://www.facebook.com/ManziAppraisers/.
